Beer Duty Escalator

Baroness Primarolo Excerpts

Thursday 1st November 2012 Commons Chamber

[Mr Donohoe]

I am very grateful to the hon. Gentleman for giving way. Will he reconsider his previous answer to me? Scotch whisky is the heaviest taxed of all the spirits, beers, ciders and wines in this country. [Interruption.] It is the heaviest taxed.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. The hon. Gentleman will sit down. We are not discussing duty on whisky, as much as some Members would like to discuss it. We will keep to the debate, which is about beer duty and pubs.

[Andrew Griffiths]

Thank you, Madam Deputy Speaker. What I would say to the hon. Gentleman is that 95% of all Scotch whisky is exported. In the UK, 87% of all the beer that is drunk in this country is brewed in this country. Beer is a great British manufacturing success story, which is why we need to support it.

--- Later in debate ---

[Philip Davies (Shipley) (Con)]

I commend my hon. Friend on his speech, which is excellent as ever. Is not the point that beer duty disadvantages pubs against supermarkets? Supermarkets have 40,000 other products that they can cross-subsidise, perhaps by selling beer at a loss or a reduced price. We are in an economic mess because we have over-spent, not because we are under-taxed, and the Government’s solution should be to reduce spending, not to seek to increase taxation for ever.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. There is a great deal of pressure on this debate, and I wish it took only a look from the Chair to remind Members that introductory remarks are supposed to last for 10 minutes or so. The speech by the hon. Member for Burton (Andrew Griffiths) has already lasted considerably longer, and I would be grateful if he would make progress so that others can contribute in full speeches, rather than interventions.

[Andrew Griffiths]

Thank you for reminding me of my obligations, Madam Deputy Speaker. I will come quickly to a conclusion.

My hon. Friend the Member for Shipley (Philip Davies) makes two important points. First, supermarkets have the ability to force brewers to include in the price paid for the beer any increases in duty, whereas publicans, who tend to run small businesses, do not have that opportunity. Secondly, supermarkets use their bulk buying power to drive down the price and use alcohol as a loss leader, which disadvantages pubs.

--- Later in debate ---

[Several hon. Members]

rose—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I am reducing the speaking time limit immediately to five minutes. There are still 13 Members wishing to contribute to the debate, and I shall do my best to ensure that they are all able to do so.